U.S. patent application number 10/977473 was filed with the patent office on 2005-09-08 for information technology development transformation.
This patent application is currently assigned to Accenture Global Services GmbH. Invention is credited to Desmond, Andrew, Quilty, Ciaran, Renehan, Anne.
Application Number | 20050198486 10/977473 |
Document ID | / |
Family ID | 34915534 |
Filed Date | 2005-09-08 |
United States Patent
Application |
20050198486 |
Kind Code |
A1 |
Desmond, Andrew ; et
al. |
September 8, 2005 |
Information technology development transformation
Abstract
The present invention provides approaches to assist the
practitioner in transforming information technology (IT)
development organizations. The methods are repeatable for
implementation among multiple IT development organizations, yet can
be tailored to the individual needs of each organization. The
methods are designed to address the challenges faced by IT
development organizations due to financial factors, customer needs,
internal operations, and overall corporate organization. In
preferred implementation, the present invention provides
transformation workstreams that implement actions as needed to
expedite the IT development transformation. The IT development
transformation workstreams includes a transformation leadership
workstream, a vision & operating model workstream, a management
controls workstream, a customer management workstream, a
development processes and tools workstream, an organizational
development workstream, and a program management workstream 1100.
Each of these workstreams includes a number of substreams and
components. Many of these Workstreams are performed concurrently,
thereby offering an expedited, more efficient transformation.
Inventors: |
Desmond, Andrew; (County
Dublin, IE) ; Quilty, Ciaran; (Dublin, IE) ;
Renehan, Anne; (Dublin, IE) |
Correspondence
Address: |
ACCENTURE, LLP
C/O HOGAN & HARTSON, LLP (IPGROUP)
555 13TH STREET NW, SUITE 600E
WASHINGTON
DC
20004
US
|
Assignee: |
Accenture Global Services
GmbH
|
Family ID: |
34915534 |
Appl. No.: |
10/977473 |
Filed: |
November 1, 2004 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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60537141 |
Jan 20, 2004 |
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Current U.S.
Class: |
713/1 |
Current CPC
Class: |
G06Q 10/10 20130101;
G06Q 10/06 20130101 |
Class at
Publication: |
713/001 |
International
Class: |
G06F 009/00 |
Claims
what is claimed:
1. A system for information technology transformation comprising: a
transformation leadership module; a vision and operating model
module; a management controls module; a customer management module;
a development processes and tools module; an organizational
development module; and a program management module, wherein said
modules are performed concurrently to perform a step for visibility
and control, a step for reduce costs and improve capability, and a
step for continued improvement.
2. The system of claim 1, wherein the transformation leadership
module performs the steps of: planning; approaching; monitoring;
reporting; coaching; communicating; and management change.
3. The system of claim 1, wherein the vision and operating model
module performs the steps of: vision; organizational design;
implementation; portfolio definition; portfolio management; and
practices.
4. The system of claim 1, wherein the management controls module
performs the steps of: management information; resource management;
financial management; vendor management; portfolio management;
knowledge management; and facilities and infrastructure
management.
5. The system of claim 1, wherein the customer management module
performs the steps of: demand management; account planning;
relationship management; and customer satisfaction management.
6. The system of claim 1, wherein the development processes and
tools module performs: a project management step, a software
development step, and a quality evaluation step.
7. The system of claim 1, wherein the organizational development
module performs: a culture change step; a capability development
step; a leadership development step; a human resources strategy
alignment step; and a communications step.
8. The system of claim 1, wherein the program management module
performs the steps of executive facilitation; program planning;
monitoring and reporting status; managing a actions/issues log;
business case management; standard tools, processes and techniques;
and stakeholder management.
9. The system of claim 1 further comprising a data repository
storing data to be used by said transformation leadership module;
said vision and operating model module; said management controls
module; said customer management module; said development processes
and tools module; said organizational development module; and said
program management module.
10. The system of claim 9, wherein the data repository comprises a
scheduler for synchronizing the operation of said transformation
leadership module; said vision and operating model module; said
management controls module; said customer management module; said
development processes and tools module; said organizational
development module; and said program management module.
11. The system of claim 9, wherein the data repository comprises
exemplary documents outputs of said transformation leadership
module; said vision and operating model module; said management
controls module; said customer management module; said development
processes and tools module; said organizational development module;
and said program management module.
12. An information technology transformation method comprising the
steps of: a transformation leadership workstream; a vision and
operating model workstream; a management controls workstream; a
customer management workstream; a development processes and tools
workstream; an organizational development workstream; and a program
management workstream, wherein said workstreams are performed
concurrently to perform a step for visibility and control, a step
for reduce costs and improve capability, and a step for continued
improvement.
13. The method of claim 12, wherein the transformation leadership
workstream comprises: a step for Planning; a step for Approaching;
a step for Monitoring; a step for Reporting; a step for Coaching; a
step for Communicating; and a step for management change.
14. The method of claim 12, wherein the vision and operating model
workstream comprises a step for vision; a step for organizational
design; a step for implementation; a step for portfolio definition;
a step for portfolio management; and a step for practices.
15. The method of claim 12, wherein the management controls
workstream comprises: a step for management information; a step for
resource management; a step for financial management; a step for
vendor management; a step for portfolio management; a step for
knowledge management; and a step for facilities and infrastructure
management.
16. The method of claim 12, wherein the customer management
workstream comprises: a step for demand management; a step for
account planning; a step for relationship management; and a step
for customer satisfaction management.
17. The method of claim 12, wherein the development processes and
tools workstream comprises: a project management step, a software
development step, and a quality evaluation step.
18. The method of claim 12, wherein the organizational development
workstream comprises: a culture change step; a capability
development step; a leadership development step; a human resources
strategy alignment step; and a communications step.
19. The method of claim 12, wherein the program management
workstream comprises the steps of: executive facilitation; program
planning; monitoring and reporting status; managing a
actions/issues log; business case management; standard tools,
processes and techniques; and stakeholder management.
20. The method of claim 12 further comprising the step of forming a
business case.
21. The method of claim 12 further comprising the step of
performing an information technology diagnostic.
22. A computer-readable storage medium containing a set of
instructions for information technology transformation of an
organization, the set of instructions implementing a process
comprising: a step for transformation leadership; a step for vision
and operating model; a step for management controls; a step for
customer management; a step for development processes and tools; a
step for organizational development; and a step for program
management.
Description
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] This application claims priority under 35 U.S.C. .sctn.119
(e) to U.S. Provisional Patent Application No. 60/537,141, "Methods
for Information Technology Development Transformation," filed Jan.
20, 2004, which is hereby incorporated by reference.
STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT
[0002] Not Applicable
REFERENCE TO A "MICROFICHE APPENDIX"
[0003] Not Applicable
BACKGROUND OF THE INVENTION
[0004] 1. Field of the Invention
[0005] The present invention relates, in general, to the efficient
development of information technology in the corporate environment.
More specifically, the present invention provides methods to assist
the practitioner in executing development transformation
projects.
[0006] 2. Description of the Related Art
[0007] A strong core information technology (IT) capability is
vital to enable business growth. Many businesses typically create
separate internal organizations to develop IT solutions. IT
operations, i.e., efforts that focus on the actual operations of IT
products and systems, have been the focus of attention to improve
internal processes and maximize efficiency. However, IT development
organizations, i.e., the organization and people that actually
write software codes and compose IT products, have received
comparatively little attention as an area for organizational
optimization. IT development transformation has been an area that
has not been exploited, and very few people have looked at creating
projects around the development workforce. One reason for this lack
of attention is because this area employs quite different
measurements than other business organizations. Thus, there remains
a need for an improving IT development organizations so as to make
them more cost-effective, measurable, and efficient.
[0008] Many IT development organizations face significant
challenges due to financial factors, customer needs, internal
operations, and overall corporate organization. Financial
challenges may include, for example, an escalating IT cost base,
excessively high non-discretionary spending, low return on
investment from IT projects, and poor vendor and contractor
management. Customer-related challenges may come from either
internal customers or external customers. Customer-related
challenges may include, for example, low customer satisfaction, the
perception of the IT organization as a cost center and not as a
trusted business adviser, an unclear/passive relationship of IT to
the business, and poor project prioritization/governance process.
Challenges related to internal operations may include, for example,
poor management information, a lack of clarity on the number and/or
status of IT projects, a lack of clarity on personnel
responsibilities, poor project approval processes, and poor
resource scheduling processes. Finally, organizational-related
challenges my include, for example, a silo organizational
structure; a staff not equipped with appropriate skills; IT
development knowledge not properly captured, re-used, and managed;
inconsistent career management; and over-reliance on contractors or
third parties.
[0009] To address these challenges discussed above, improvements
must be sought in all aspects of the IT development organization,
such as the organization's governance, strategy, development
capabilities, operations infrastructure, and supporting processes.
Improvements in governance may require an IT leadership team with
the appropriate business and technical acumen. Improved governance
may also be achieved through a business leadership team equipped
and motivated to lead the use of IT. Further, a governance
structure for IT that clearly defines roles and responsibilities
and establishes the forums to provide overall direction for the IT
organization may be required to improve governance. Finally, the
governance may be improved by implementing management and execution
processes that are formal, consistently applied, and results and
value oriented.
[0010] Improvements in the strategy, architecture and planning may
be achieved by implementing IT strategies and plans that are
tightly aligned with business priorities and provide an aggressive
but realistic roadmap to the future. Improvements in IT development
may be realized by providing a development capability that is
predictable and cost-effective for both small, focused efforts and
large, complex, multiyear initiatives. IT Operations may be
improved by incorporating an operations infrastructure that is
modular, scalable, stable, and secure. Supporting processes, such
as human resources, finance, procurement, etc., may also be a means
for improvement of IT development by providing fiscal and financial
controls that enable effective management and deployment of IT
assets, resources, and activities that drive the right value at an
acceptable cost.
[0011] IT Transformation (ITT) is the large-scale fundamental
change to an IT organization's processes, technology, and culture
which reduces cost, improves return-on-investment (ROI) and creates
the strong capabilities required for modern IT programs and
services. The objectives of ITT are to meet the challenge areas
discussed above: financial factors, customer needs, internal
operations, and overall corporate organization. Financial
objectives may include reducing the overall IT expenditures;
reducing non-discretionary IT expenditures; and increasing the
return on investment (ROI) from IT. Customer-based objectives may
include improving the IT organization's relationship with the
overall business and increasing the quality of services. Objectives
for internal operations may include providing comprehensive
management information; ensuring smooth running of the
organization; and using resources efficiently. Objectives for the
overall corporate organization may include improving delivery
capabilities for all services, in particular, for strategic
programs and creating a change-ready culture.
[0012] Methodologies to incorporate ITT may easily develop into a
complex state of affairs that become too elaborate or overwhelming
for practical implementation. Similarly, methodologies that require
extensive materials leading up to their implementation may fail to
achieve the momentum necessary for successful implementation.
Conversely, methodologies that may appear concise may include only
superficial changes that lack the desired long-term
transformational effect for the IT development organization.
[0013] Methodologies to implement ITT may typically be implemented
by two basic approaches, internally driven and externally driven.
The `externally driven` approach is typically quite directive.
Typically, there is a dedicated transformation-implementation team,
usually composed of both client and outside consultant personnel,
with the consultants being dominant. The team sits "outside" the
organization, and is accountable for identifying the issues inside
the organization; determining the corrective actions required in
terms of structures, processes, and culture; designing the new
structures and processes; implementing the new structures,
processes and behaviors into the organization. In the "externally
driven" model, the consultant plays the role of shaping and leading
the change journey; leading the various project teams addressing IT
governance, IT development processes, management controls, and
culture change; and communicating with and training the internal
staff in the new processes, tools, and behaviors.
[0014] The `externally driven` approach to implementing ITT can
provide advantages. For example, the external approach can make
rapid progress in identifying issues and designing new processes or
may be more effective in providing clear direction to the
organization. Conversely, disadvantages of the externally driven
approach may include the disincentive for the organization to buy
in into the externally proposed changes. Also, the changes may not
be sustained once the transformation team disbands. Furthermore, it
can be difficult and time consuming to implement the changes
presented by the external organization.
[0015] Turning now to the "internally driven" approach to
implementing ITT, this approach seeks to lead the organizational
transformation from within the IT organization. An executive team,
for example, made of people primarily within the IT development
organization take full accountability for the transformation of
their organization. This internal team will shape and create the
change program and merge the change program with day-to-day work.
Such a team may actively lead the workstreams and drive the change
down through the organization. Because the transformation team is
integral with the existing IT development organization, changes in
the personal behaviors of the transformation team serve as models
to the rest of the organization. Members of the internal
transformation team can communicate passionately and continuously
on the change to their teams and develop their capabilities so that
they can create similar commitment and energy in their staff.
[0016] Others within the IT development organization--those not
part of the formal internal transformation team--also participate
actively in the change, with the change becoming a key part of
their goals and objectives. Staff members may be involved in
intensive working parties to address specific organization, process
and culture issues. Even in the internally driven model, outside
consultants are still used to create the framework for the change
journey, to facilitate and support the executives in shaping and
leading the change journey, to coach the executives in motivating
and leading their staff, to facilitate and support working parties
in addressing key issues, and to provide specialist input on
various of topics, such as IT governance, IT development processes,
management controls, and culture change.
[0017] The `internally driven` approach to implementing ITT can
provide advantages. For example, the internal approach creates
ownership within the IT organization for the new structures,
processes and behaviors and builds the capabilities of the client
organization, from executive level down. The concept of client
ownership is more likely to lead to sustainable change. However,
the internally driven approach requires strong leadership and
commitment from the internal executive team, which must be capable
of changing their own behaviors and leading their organization
through difficult change. Also, the transformation program may take
time to generate momentum, as it requires, first, development of
ownership and passion in the executive team, and, then for the
executives to cascade this to their staff.
[0018] To be effective in multiple IT development organizations,
the employed IT transformation methodology must incorporate
repeatable diagnostic techniques. This diagnostic must be able to
assess the capabilities of an IT development organization and
identify and prioritize the issues that an IT development
transformation program should focus on. The diagnostic must,
therefore, provide a framework that assesses all relevant areas of
the IT development organization. The assessment should have the
right balance between "breadth" and "depth." Because it is
important to cover all aspects of the organization, the depth of
the assessment must be kept at a manageable level. The assessment
should be able to incorporate both qualitative and quantitative
measures. Ideally, such a diagnostic method could be used during an
opportunity assessment and or at the start of an IT transformation
program.
[0019] While business entities may have addressed some of the
challenges and choices to transform their IT development
organizations, an overall packaged approach of accomplishing IT
development transformation is needed. Such an approach must be
structured to be easily replicated across different IT development
organizations while able to be tailored to the needs of each
organization. Effective IT development transformation methodologies
should provide financial improvements, meet customer needs, enhance
internal operations, and align with the overall corporate
organization.
BRIEF SUMMARY OF THE PRESENT INVENTION
[0020] To address the challenges described above, the present
invention provides approaches to assist the practitioner in
transforming information technology (IT) development organizations.
The methods are repeatable for implementation among multiple IT
development organizations, yet can be tailored to the individual
needs of each organization. The methods are designed to address the
challenges faced by IT development organizations due to financial
factors, customer needs, internal operations, and overall corporate
organization. The present invention includes several components
including an IT transformation overview; an IT organization
diagnostic; an IT transformation approaches, tools and techniques
phase; an IT development plan; a business case for transformation;
and a sample deliverable presentation.
[0021] The IT transformation overview summarizes the challenges
faced by a typical IT organization, providing context for the value
and benefits that an IT transformation (ITT) program can deliver.
It also provides an overview and definition of IT transformation
outlining the major components of ITT and the relationship between
IT development and IT Transformation.
[0022] The IT development organization diagnostic provides a
framework for assessing the core development capability of an
organization and prioritizing the key issues for a development
organization. It can be used during the opportunity assessment
phase or at the outset of an IT development transformation program.
A presentation outlines the framework and provides sample questions
that could be used to gauge the capability of the IT development
organization.
[0023] The IT transformation approaches, tools and techniques phase
assess the two major approaches to conducting development
transformation (i.e., internally led; externally driven). It lists
the advantages and disadvantages of each approach and identifies
the circumstances under which each is appropriate. It also outlines
sample tools and techniques that can be used during a
transformation program.
[0024] The presentation of an IT development transformation
methodology describes the in detail the packaged methodology for
conducting an IT development transformation. It describes in detail
the components of the methodology including descriptions, the key
tasks involved and the resource requirements based on information
gathered from initial diagnostics.
[0025] The business case for transformation focuses on the primary
objectives of IT transformation, which are to reduce cost and to
improve delivery capability. The quantitative business case for IT
transformation programs is built primarily on cost reduction. This
presentation details the cost reduction levers that can be used and
the range of benefits typically obtained.
[0026] Finally, in a preferred embodiment, sample deliverables
typically produced during an IT development transformation program
are presented. Detailed deliverables can be reviewed to foster
ideas for change within the existing organization.
[0027] In preferred implementation, the present invention provides
transformation workstreams that implement actions as needed to
expedite the IT development transformation. The IT development
transformation workstreams includes a transformation leadership
workstream, a vision & operating model workstream, a management
controls workstream, a customer management workstream, a
development processes and tools workstream, an organizational
development workstream, and a program management workstream. Each
of these workstreams includes a number of substreams and
components. Many of these Workstreams are performed concurrently,
thereby offering an expedited, more efficient transformation.
BRIEF DESCRIPTION OF THE DRAWINGS
[0028] A more complete understanding of the present invention and
advantages thereof may be acquired by referring to the following
description taken in conjunction with the accompanying drawings in
which like reference numbers indicate like features, and
wherein:
[0029] FIG. 1 illustrates a IT transformation method in accordance
with embodiments of the present invention;
[0030] FIG. 2 depicts an IT diagnostic process as used in the IT
transformation method of FIG. 1 in accordance with embodiments of
the present invention;
[0031] FIG. 3 depicts an exemplary depicts an IT diagnostic
produced in the an IT diagnostic process of FIG. 2 in accordance
with embodiments of the present invention;
[0032] FIGS. 4A-4B and 5-11 depicts the steps in an IT
transformation workflow to expedite IT transformation method of
FIG. 1 in accordance with embodiments of the present invention;
[0033] FIG. 12 depicts the steps in a method for developing a
business case as used in the IT transformation method of FIG. 1 in
accordance with embodiments of the present invention; and FIG.
13A-B schematically depicts a IT Transformation tool for
implementing the steps of IT Transformation method of FIGS. 1 and 4
in accordance with embodiments of the present invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0034] The present invention generally relates to an IT development
transformation method 100. The IT development transformation method
100 is about fundamentally changing an organization. Specifically,
it changes the culture of the organization; organization structure
of roles and responsibilities, processes, and tools. Such a level
of change in the development transformation method 100 requires a
vast injection of organizational energy, commitment and passion
since organizations tend to continue existing practices. There are
two fundamentally different approaches which can be taken,
Externally Driven or Internally Led, and the these two approaches
are described in greater detail below. The present invention
provides a variety of tools and techniques that can be used to
support the Transformation process using either of these
approaches.
[0035] The externally driven approach is typically quite directive,
and generally includes the use of a dedicated transformation team
that sits outside the organization, and is accountable for (1)
Identifying the issues in the organization; (2) Determining the
corrective actions required in terms of structures, processes, and
culture; (3) Designing the new structures and processes; and (4)
Implementing the new structures, processes and behaviors into the
organization. The external driven approach offers several
advantages, including potentially making rapid progress in
identifying issues and designing new processes and providing clear
direction. However, the external driven approach may be
disadvantageous because the transformation team may not get buy-in
from the organization for the proposed changes, the changes may not
be sustained once the transformation team disbands, and recommended
changes may be difficult and time consuming to implement. Ideally,
the external approach is used in the diagnostic phase 200 when an
objective external assessment is required in order to accurately
access the organization, even if the assessment is negative toward
the existing management. The external approach may also be
advantageous if sustainable change within the existing organization
is not required, such as the outsourcing of large components of the
organization, or if the management of the organization does not
have the capability to lead a Transformation. The external approach
is also desirable if the organization wishes to dramatically change
the existing management.
[0036] In contrast, the internally driven approach implements
change through the existing executive team or management, thus
having people controlling the current operations oversee the
changes in these operations. Accordingly, the existing management
takes full accountability for the transformation of their
organization as part of their goals and objectives. The management
shapes and creates the change program, and typically merges the
change program with existing day-to-day work. The management
actively leads the workstreams and drives the change down through
the organization. These tasks may require the management officers
to change their own personal behaviors, to communicate passionately
and continuously on the change to their teams, and to develop their
capabilities so that they can create similar commitment and energy
in their staff. In the internal approach, the staff generally
participates actively in the change, with the change becoming a key
part of their goals and objectives. Moreover, the staff is involved
in intensive working parties to address specific organization,
process and culture issues. Accordingly, the role of the present
invention in the internal approach is to create the framework for
the change journey; to facilitate and support the Executives in
shaping and leading the change journey; to coach the Executives in
motivating and leading their staff; and to facilitate and support
working parties in addressing key issues; to provide specialist
input on a wide range of topics, including IT Governance, IT
Development processes, Management Controls, Culture Change. The
internally driven approach generally creates ownership within the
client organization for the new structures, processes and
behaviors; builds the capabilities of the client organization, and
often leads to sustainable change. However, the internally driven
approach is often has disadvantages of requiring strong leadership
and commitment from the client executive team, who must be capable
of changing their own behaviors and leading their organization
through difficult change. The internal approach may be advantageous
when sustainable change is required, when the organization's
management is capable and receptive to the proposed needed
changes.
[0037] One key to IT Development Transformation method 100 is to
create the ownership and commitment within the client executive
team so that they accept and understand the need for change. The
management, in turn, must cascade that ownership and commitment
throughout the organization. Toward this goal, the IT Development
Transformation method 100 strives to allow the organizations
executives to build the change plan, rather than enforce a plan
produced by a distrusted third party. The executive team should
identify the priority issues and determine how best to address
these. The issues and their resolution will vary from one
organization to the next, but the present invention works with the
executive team to determine which workstreams are appropriate and
create the change plan. The present invention further works directs
the organization to establish a Program Sponsor & Leadership
because the program 100 can have a major impact on the roles and
responsibilities of the executive team. Thus, IT Development
Transformation method 100 fosters strong active leadership from
either the Group CIO or sponsoring Business Head. Moreover, the IT
Development Transformation method 100 is non-prescriptive in that
it outlines the superset of workstreams which can be applied at
various stages during a Transformation program as desired by the
organization management.
[0038] In view of these needs, turning now to FIG. 1, the IT
transformation method 100 implemented in embodiments of the present
invention optionally begins with an organization diagnostic 200 to
assess the present state of the organization. Following the
diagnostic step 200, the IT development transformation method 100
continues with visibility and control in step 110, cost reduction
and improvement in capability in step 120, and continued
improvement in step 130.
[0039] Turning now to FIG. 2, the Development Organization
Diagnostic performed in step 200 is a framework for accessing the
core development capability of an organization and prioritizing the
key issues for a Development organization. It can be used during
the Opportunity Assessment phase or at the outset of an IT
Transformation program. The purpose of the Development Organization
Diagnostic is (1) to assess the capabilities of an IT Development
Organization and (3) identify and prioritize issues on which a
Development Transformation program should focus. The Organization
Diagnostic does this by providing a framework that assesses all
relevant areas of the organization. The Organization Diagnostic
generally occurs during an Opportunity Assessment and/or at the
start of an IT Transformation program, as described in greater
detail below. The Organization Diagnostic of step 200 measures the
core capability of an IT Organization. Specifically, the
Organization Diagnostic helps to identify and prioritize issues on
which a Development Transformation program should focus.
[0040] In performing a diagnostic, an organization should adhere to
several guiding principles. Typically, the assessment should have
the right balance between "breath" and "depth". It is vital to
cover all aspects of the organization, so the depth should be kept
at a manageable level. Likewise, the emphasis of the diagnostic
will vary from the organization to the next, depending on the
client's view of their key issues. The assessment should involve
both qualitative and quantitative measures. Qualitative measures
should be scored based on the assessor's experience and industry
practice.
[0041] Turning now to FIG. 2, the following discussion outlines the
framework and provides exemplary questions that may be used to
gauge the capability of the organization. The organization
diagnostic of step 200 begins with gathering data in step 210. The
gathering of the data in step 210 generally includes requesting
quantitative data from appropriate executives, line management and
staff, such as gathering qualitative data from interviews,
workshops and observation. The data obtained in step 210 is next
refined in step 220 by reviewing the received data to understand
the method of calculation, integrity etc. The refining of the data
in step 220 may include filling in data gaps, such as providing
estimates as needed to perform the diagnostic because the required
data may not be available in many organizations. The refined data
is then used in step 230 to score the organization based on the
qualitative and quantitative data received, industry benchmarks,
judgment and experience score the metric, associated quadrant and
overall organization. The score from step 230 may further outline
the Strengths, Weaknesses and Opportunities per quadrant and for
the organization as a whole. The organization diagnostic of step
200 continues with Agreeing to an Action Plan in step 240 to
confirm the score with the organization executives to ensure that
the client executive accept and understand the scores and the
rationale behind the scores, and to further agree to the required
next steps to start moving the organization to a desired state.
These steps in the organization diagnostic of step 200 are now
discussed in greater detail.
[0042] Returning to FIG. 2, the organization diagnostic of step 200
begins with the gathering of data in step 210 as needed to score
the organizations performance in financial criteria, customer
service criteria, internal operation criteria, and organization
criteria. In gathering data related to the organization's financial
performance, the objective is to assess how much IT is costing,
whether it is spending in the right areas and to determine the
organization's return of investment from its IT. Quantitative Data
related to financial performance to be considered during step 210
may include defining IT spending in absolute monetary terms and as
a percentage of the organization's total revenue and total
operating cost; defining a ratio of IT cost-to-value ratio, the
ratio of strategic spending to non-strategic spending; determining
the organization's ROI from its IT; the level of staff utilization;
the level of staff chargeability; the bad debt position in monetary
terms; the net budget position; and the average daily rate,
internal daily rate and external daily rate. Similarly, qualitative
data related to financial performance often includes indicia about
the ease of obtaining management information and the transparency
of the budgeting process.
[0043] In gathering data related to customer services performance,
the objective of data gathering in step 210 is to collect
qualitative and quantitative data on customer to assess how well
the organization delivers projects and day-to-day service. Types of
quantitative data in collected step 210 include an accounting of
the number of projects underway; the number of projects on schedule
and on budget; a rating of customer satisfaction; determining the
project management processes and tools are in place; and
determining the software development processes and tools are in
place. Similarly, types of qualitative data to be collected in step
210 include data indicating whether customer satisfaction is
measured formally and informally; data reflecting whether the
customer receive regular status updates; and the key problems with
the organization from a customer perspective.
[0044] Turning back to FIG. 2, in gathering data related to
internal organization, the objective of data gathering in step 210
is to assess the governance and management of the IT function and
to assess the efficiency and effectiveness of the internal
operations of the organization. Types of quantitative data related
to the organization's operation model include assessing the
effectiveness of the following; defining board-level Leadership of
IT within the organization; defining strategic management of IT;
defining operational management of IT; defining management
reporting of IT; defining resource management of IT staff; defining
vendor management; defining financial management of the IT
function; defining knowledge management; defining time recording;
and defining facilities and infrastructure.
[0045] Continuing with FIG. 2, in gathering data related to
organization management, the objective of data gathering in step
210 is to access the capability of the organization from a
structure, skills and people point of view. Types of quantitative
data related to the organization management include quantitative
data about staff satisfaction; staff turnover; the average duration
of the staff's service; the customer satisfaction rating with the
IT people. Types of qualitative data related to the organization
management include indications about the organization structure,
about the effectiveness of the organization structure, and about
the accountabilities of IT employees for important tasks. Other
types of qualitative data related to the organization management
include indications about the presence and effectiveness of formal
career and performance management processes; information about how
is training conducted; information about how performance management
and career management are conducted; information about whether
knowledge maximized and re-used in the organization; information
about the current skill levels and the core values of the
organization; whether there is a long-term vision and plan for the
organization, and information about how are resources managed and
scheduled.
[0046] Returning to FIG. 2, the various types of data collected in
step 210 are then refined in step 220. The objectives of the data
refinement in step 220 are to review the data calculation and
integrity and to provide estimates where data is not available.
With the quantitative data, the refining step 220 may include,
where data is not available, obtaining best-guess estimates from a
range of client members or conduct some sampling/surveys. The
estimates are then reviewed, and where it is not possible or
appropriate to provide an estimates, the data category is left as
unknown. With qualitative data, the refining step 220 may include
attempting to understand the underlying agendas and internal
politics; interviewing more people if required; and pushing back on
opinions. After the refining step 220, the organization should
understands the data and be ready to score its IT.
[0047] Continuing with FIG. 2, the refined data from step 220 is
used to score the organization's IT program in step 230 to provide
the organization with an indication of its core capability and to
highlight the strengths, weaknesses and opportunities for the
organization. Toward this goal, the organization is scored in a
variety of metrics and a concise explanation of the reasoning
behind the scores are preferable provided. The scores from separate
metrics may then be used to the score the organization's
performance in several categories, such as the above-described
groupings of financial performance, customer service,
organizational capabilities, and internal operating model and to
document the strengths, weaknesses, and opportunities of the
organization for each categories. The organization may further be
scored on its overall performance and to determine the overall
strengths, weaknesses and opportunities for the organization.
[0048] Returning to FIG. 2, the scoring from step 230 is used to
form in step 240 an action plan that to agree on the high priority
areas; to shape the overall Transformation; and to create an action
plan. Key tasks in forming the action plan in step 240 include
discussing the findings of the diagnostic with the executive team;
ensuring that the executives understand the rationale behind each
score; management agrees to the high priority areas; creating an
overall plan for the transformation of the organization, including
creating an action plan for the first portion of the program.
Overall, after the action plan formation in step 240, the
organization should understand the need for transformation, create
an overall journey map and decide the immediate next steps in the
transformation.
[0049] Turning now to FIG. 3, the Organization Diagnostic of step
200 generally entails the organization walking through a series of
questions to ascertain Key Performance Indicators (KPIs) 301 that
provide a framework to access the core capability of an IT
Organization the Based on the IT challenges faced today. An
exemplary Organization Diagnostic worksheet 300 is displayed in
FIG. 3. The organization diagnostic worksheet 300 grades the
organization in a series of criteria. Continuing with FIG. 3, the
organization diagnostic worksheet 300, is generally divided into
separate categories to address different aspects of IT performance,
such as financial criteria 310, customer service criteria 320,
internal operation criteria 330, and organization criteria 340. It
should be appreciated that the development and grading of the
organization's IT is a generally known process. The particular
questions and criteria included in the organization diagnostic
worksheet 300 may vary as needed, for example, to assess
organizations of different sizes or types.
[0050] In a preferred implementation, the present invention employs
a framework, as depicted in the organization diagnostic worksheet
300, that uses both qualitative and quantitative measures to assess
and score the organization to compares, where possible, against
industry best practices (i.e., the accepted performance standards).
For example, a color-coded rating 350, such as Red, Amber or Green
(RAG), may be assigned to each KPI, based on the actual measure,
its trend and its comparison against benchmark/best practice. In
this type of a color-coded rating 350, Red means there are
significant issues, Amber means there are some minor issues, and
Green means the performance is good. An overall score is then
assigned to the criteria grouping (310-340) based on the sum of the
KPIs individual scores in each of the groupings. Typically, Scoring
the organization, a quadrant, and a KPI requires experience and
judgment on behalf of the user and buy in and acceptance by the
client executive team.
[0051] Continuing with FIG. 3, optionally, the organization
diagnostic worksheet 300 may further include other information,
such as industry comparison 360 that displays possible variances
against industry benchmarks or organizational objectives. Trend
data 370 may, where possible, display the changes in the
organization over time to show whether or not the organization is
improving. The organization diagnostic worksheet 300 may further
contain an accountability designation 380 that indicates who in the
organization is accountable for the performance of each of the
KPIs. Asking this question can be revealing because poorly
performing organizations tend to have poor measurement and unclear
accountabilities.
[0052] Returning now to FIG. 1, the next steps in the IT
development transformation 100 of the present invention are
Visibility & Control phase 110, Reducing Cost & Improving
Capability phase 120, and Continual Improvement phase 130.
[0053] Visibility & Control phase 110 has a first objective of
the executive team collectively confirming their commitment to
change and to communicate this confirmation to the organization. A
second objective of the visibility and control phase 110 is to get
visibility of the organization in terms of determining (1) the
Number and status of projects; (2) the number of staff and the
projects on which they are working; (3) Utilization and
chargeability; (4) Financial position; and (5) Customer
satisfaction. A third objective of the visibility and control phase
110 is to gain control over projects, people, and finances. This
may involve implementing a new organization structure, new roles
and responsibilities and new management controls.
[0054] Accordingly, the visibility and control phase 110 includes
getting the executive team to objectively assess their organization
and confirm the necessity for change, particularly if it affects
their roles and responsibilities, and this requires strong CIO
Leadership to challenge the executive team. Furthermore, the
visibility and control phase 110 may entail changing the
organization structure if required, so the executive team must
identify and agree that a new organization structure is required.
This need for organization structural change must then be
communicated to the organization and the process and timetable
clearly set out as part of the visibility and control phase 110,
and again, strong CIO Leadership is required. The visibility and
control phase 110 further includes getting data on financial spend
and project status. If this data is not readily available, then the
visibility and control phase 110 includes establishing a number of
working parties to collate a good base of data within a reasonable
time period. Continuing with the visibility and control phase 110,
the executive team should communicate the need for change to their
staff, so the it development transformation should include a
well-crafted communications plan, which incorporates formal events
where the executive team lead the sessions and present to their
staff, informal sessions where staff can question of the
executives, and publicly available information that prominently
describes the program 100. The visibility and control phase 110
further includes getting the executive team to act as a team, work
together and drive the change program, for example, setting a
calendar for the executives to insure that they have time to work
together.
[0055] Returning now to FIG. 1, the IT development transformation
method 100 continues with reducing costs and improving capability
step 120. Cost reduction is a core objective of Transformation
process 100, and typically, savings are achieved through reducing
the cost of application maintenance, through improved
classification, improved work practices. Further saving can be
achieved reducing costs and improving capability step 120 by
reducing the amount of tactical spending through better governance;
reducing the amount of management overhead through better
Management information systems (MIS) and improved operational
procedures; and reducing labor costs through better sourcing
strategies.
[0056] At the same time, reducing costs and improving capability
step 120 generally includes improving capability positions of the
IT function to add greater value to the business units it serves,
increasing customer satisfaction and improving the financial return
on IT investments. Improved capability is typically achieved
through leadership development programs, focused capability
development programs, sourcing strategies, changes in culture and
behaviors, and improved software development tools and
processes.
[0057] During the reducing costs and improving capability step 120,
the organization baselines the cost of the organization, but data
may not be available, the organization may need to make reasonable
estimates to avoid the expenditure of excessive resources in
baselining. The reducing costs and improving capability step 120
may further include implementing the new processes, including
changes in behavior, particularly governance and approval
processes. In this capacity, the reducing costs and improving
capability step 120 may include using Working Parties with
cross-organizational membership to define and implement the new
processes. These parties will create ownership of the new
processes. Also, the reducing costs and improving capability step
120 may include getting the Working Parties to run communication
sessions to explain the process to their peers. Thus, each Working
Party optimally has an executive sponsor to ensure that it has the
authority to force in change if required. Likewise, staff bonus
payments may be linked to the success of the organization.
[0058] The reducing costs and improving capability step 120 further
includes improving Development productivity. For repetitive tasks,
such as application maintenance, development productivity can be
measured and improved in the medium term through new tools and
processes. However for one-off activities, such as strategic
programs, it is much more difficult to measure productivity, and
improvements take a long time. Measurement techniques such as
function point analysis, lines of code per day, etc. should be used
carefully.
[0059] Continuing with FIG. 1, the next step in the IT development
transformation method 100 is continual improvement phase 130.
During the continual improvement phase 130, the IT development
transformation method 100 winds down and processes are implemented
to help insure that changes carried out during the transformation
are preserved and continued. Thus, the continual improvement phase
130 includes motivating the executives and staff to continually
assess and improve the organization, across all dimensions, to
implement capability development programs to equip the organization
to continually change, and to incorporate an agenda of continual
change as part of the organization and built into all staffs'
objectives. For example, a working team may agree to meet at 3
months interval to monitor existing changes to assess the need for
additional changes.
[0060] As may be appreciated in the above discussion of the steps
in the IT development transformation method 100, it may be possible
to streamline or other improve the operation of the IT development
transformation method 100 through a series of more concrete
operations. Accordingly, embodiments the present invention provides
that the IT development transformation method 100 may be carried
out through a series of concurrent IT development transformation
workstreams 400, as described below, that implement actions as
needed to expedite the IT development transformation method 100, as
depicted in FIG. 4A. The IT development transformation workstreams
400 includes transformation leadership workstream 500, vision &
operating model workstream 600, management controls workstream 700,
customer management workstream 800, development processes and tools
workstream 900, organizational development workstream 1000, and
program management workstream 1100. Each of these workstreams
includes a number of substreams and components, as described in
greater detail below.
[0061] Turning now to FIG. 4B, a graph 410 displays the
relationship of the IT transformation workstreams 400 with the IT
transformation method 100. Specifically, it can be seen that many
of the workflows are performed concurrently, thereby offering an
expedited, more efficient transformation.
[0062] Turning now to FIG. 5, the operation of the transformation
leadership workstream 500 relates to shaping, leading and
continually reappraising the program. Usually, these programs are
run in waves, with a major reassessment/replanning periodically.
The transformation leadership workstream 500 is now discussed in
greater detail. The transformation leadership workstream 500
generally begins with transformation leadership planning step 510
when The executive team plans the program, setting the overall
long-term goals (2 years), and then decompose the program into
waves/phases of 3 to 6 months each. For each wave, the team defines
the theme, the goals to be achieved, what working parties are
required, who is involved, etc. Key Tasks in the transformation
leadership planning step 510 includes determine the long-term goals
of the program, defining the waves/phases, with their associated
themes, and defining the next wave in detail--goals, workstreams,
and resourcing.
[0063] Concurrent with the transformation leadership planning step
510 is a concurrently performed transformation leadership approach
step 520. The transformation leadership approach step 520 addresses
the need that often a Transformation program requires changes to
the composition and roles of the Executive team. Specifically, the
transformation requires changes to the way in which the Executive
team and interact with one another and the rest of the
organization. The objective of the transformation leadership
approach step 520 is for the executive team to define how they
should work as a team, when they meet, how they interact with the
rest of the organization, etc. Key tasks in the transformation
leadership approach step 520 include defining goals for Executive
team, agreeing to roles and responsibilities; defining ground
rules; and agreeing to a modus operandi.
[0064] The transformation leadership workstream 500 then continues
with the performing of a monitoring step 530, a reporting step 540,
a coaching and monitoring step 550, a communications step 560, and
a change management step 570, as indicated in FIG. 5.
[0065] The monitoring step 530 is directed to problematic varying
over time of the focus, pace and impact of the change program. The
Executive must continually monitor the organization and take
whatever action is appropriate to continue to drive the
organization forward and make it successful. Thus, a key task in
the monitoring step 530 includes creating a scorecard with which to
assess progress of the organization. The monitoring step 530
further includes regular or periodic assessing of the progress of
the working parties, other change projects and the organization as
a whole. The monitoring step 530 further includes making required
amendments to plans.
[0066] The monitoring step 540 relates to committing to a
transformation program. Specifically, committing to a
transformation program is effectively a public commitment by the IT
organization to the rest of the business. Thus, the program has a
wide range of stakeholders who must be updated. Regular updates to
these groups, with consistent messages, are very important. These
stakeholders typically include the Group Executive who will usually
have to sign-off on the business case, the business units who, as
customers of IT, will be keenly interested in progress, and IT
staff. Key tasks in the monitoring step 540 include determining
program stakeholders, creating a plan for updating stakeholders,
and conducting regular updates.
[0067] Turning back to FIG. 5, the transformation leadership
workstream 500 continues with the coaching and mentoring step 550
to encourage behavioral change and to deal with the personal impact
of the program. Toward these goals, the executives should implement
a coaching/mentoring plan step 550 where each executive is assigned
a number of senior managers who typically do not report to him
directly. The role of the executive is to have informal sessions
where they listen to the concerns of the manager, offer advice, and
reinforce messages. This technique should be cascaded throughout
the organization. Key tasks in step 550 include determining the
role of coaching/mentoring program, designing the program,
assigning and training coaches, and implementing the program.
[0068] The communication step 560 addresses the need continual,
passionate communication as one of the key ways of introducing the
change program, creating buy-in and moving people along the change
curve. A key principle of transformation is that change should be
cascaded through the organization, i.e., each level is accountable
for motivation and leading the staff that report to them. To make
this happen, communications should be cascaded, and a wide range of
techniques are available including set piece events, weekly status
meetings, one-to-one meetings, and visual displays. Key tasks in
the communication step 560 include developing a communications
plan, implementing the communications plan, and assessing the
effectiveness of communications using known methods.
[0069] The transformation leadership workstream further include
change management step 570. A transformation program has enormous
impact on the staff of the IT organization, and their roles and
reporting lines may change, the processes and tools they use will
change and the mood and culture of the organization in which they
work may change. Managing the impact of this change on their staff
is the primary role of the executive team. If the change is managed
and communicated correctly, then the majority of staff will buy
into it. However some will not--they may lack either the will or
the skill to change. Management will have to deal with these people
within the confines of the Human Resources policies of the
organization. Thus, key tasks in the change management step 570 may
include assessing the change in the readiness state of the staff of
the organization, identifying the change agents and change
blockers, Developing a plan to use agents, developing a plan to
minimize impact of blockers, and implementing change plans
[0070] Turning now to FIG. 6, the substeps of the vision and
operating model worksteam 600 is described in greater detail. IT
organizations that are under-performing tend to have ineffective
organizational structures. They do not have a clearly defined
strategy or vision. Roles and responsibilities are not clear, and
organizational structures tend to exist with poor utilization of
staff. Thus, the objectives of the vision and operating model
worksteam 600 are for the executive team to determine the desired
end-state for the organization, to define the operating model
required to support this, and to implement this new operating
model. The objectives of the vision and operating model worksteam
600 also includes reviewing all existing work in the organization
with the objective of shutting down low value projects, reducing
cost. The vision and operating model worksteam 600 includes vision
step 610, organization design step 620, implementation step 630,
portfolio step 640, portfolio rationalization 650, and practices
step 660.
[0071] The vision step 610 addresses the need of documenting the
current state of the IT and listing the priority issues. This may
have be done during the Organizational assessment (OA) 200. The
desired end-state for the organization is now defined. It should
include scale (how many staff), portfolio of work (compliance,
tactical, strategic), relationship to the business units, sourcing
strategy, skills and capabilities required, etc. Articulating this
vision is central to creating a momentum for change within the
organization. A roadmap outlining interim stages is then created.
Accordingly, the vision step 610 includes a current state
assessment to determine priority issues; defining the desired end
state in terms of scale, portfolio of work, skills, technology, and
sourcing; defining a road map with interim targets, and creating
change program.
[0072] Changing the organizational structure in the organization
design step 620 is a key step in the transformation of an
organization. The organization design step 620 provides the
executives with an opportunity to reduce cost, empower staff,
create scheduling flexibility, remove "dead wood" and promote
energetic and capable staff. However the organization design step
620 can also be challenging for the executives in that it is likely
to change their roles. Thus, strong leadership from the Group
CIO/Business Head is required. There are a number of different
organizational structures which can be implemented. Which one is
chosen depends on the end-state vision for the organization, the
priorities of the organization and the availability of qualified
executives and staff. However there are a number of key underlying
principles to which the executive team must adhere. Thus, the
organization design step 620 often includes defining guiding
principles for the new organization. The organization design step
620 further includes defining the various options on organization
structure, evaluating the options, and choosing a best fit. The
organization design step 620 may further include the defining of
roles, grading criteria, and defining standard practices for the
new organization.
[0073] The vision and operational model 600 further continues with
organization implementation step 630. Implementing a new
organizational structure takes considerable time and effort. In
terms of selecting people for roles, the executive team have to
decide on what approach they wish to adopt: whether just to appoint
people or embark on an intensive series of private meetings with
all available candidates. The latter approach is recommended as it
creates buy-in and gives the executive an opportunity to assess the
change readiness/capabilities of their staff. Thus, key tasks of
the organization implementation step 630 may include determining an
implementation approach, creating an implementation plan,
communicating a new structure and plan, conducting the personal
meetings; assessing candidates and making, creating transition
plan, conducting the handover process, and cutting over to new
organization.
[0074] Based on the Vision defined in step 610, the Executive
decides what the portfolio of work is for their organization in
step 640. The leaders need to clearly define each type of work
(strategic, compliance, tactical, maintenance, support) and the
governance rules for commissioning work in step 640. Then using the
new Organization Structure, the high level process flows, and
associated accountabilities/responsibilities, for each type of work
are defined. The portfolio definition step 640 may include defining
the categorization rules in the new organization and governance
rules for commissioning work. The portfolio definition step 640 may
further include define high level process flows and grading
criteria.
[0075] Turning now to a portfolio realization step 650, a working
party should be established to review all work currently being
executed in the organization. Each piece of work should be reviewed
under a number of headings: objectives, type of work, business
case, sponsor, budget and schedule status, resources. An assessment
is then made as to whether that piece of work should continue as
is, be stopped or be reconfigured. This process is excellent for
eliminating low value work from the organization, thus reducing
cost. Consequently, key tasks in the portfolio realization step 650
include creating Terms of Reference for Working Party. Then, the
executives define criteria by which to assess each piece of work.
An inventory of all existing work may be created as well. The
reviews are then conducted, and the executives use this information
to make decisions on each piece of work, such as whether to
continue, stop, or reconfigure the work.
[0076] Continuing with FIG. 6, the visions and operations model
workflow continues with the practices step 660. If the client
decides on a project-based organization structure, practices should
be set up. Practices, (or resource pools), allow organizations to
place greater emphasis on projects, as resources are no longer
`owned` by functions but are aligned to a Practice through their
skill set, e.g. Business Analysis. Practices are a best-practice
industry model, which allows the organization to focusing on
developing organizational capability, improving performance
management and career development processes and implementing best
practice across the organization. Thus, key tasks for the practices
step 660 include designing a practices framework, where a working
party should also be set up to design the Practices Framework and
to develop the process, procedures and grading criteria. Next, the
practices are mobilized once the Practices Model is designed, so
that employees are assigned to Practices based on their skill-sets.
Once the Practices Program Plan is in place, the Practice Leads
hold their meetings to explain the purpose of Practices and the
importance of employee involvement in order to implement and
institutionalize the practices. The Practice Leads meet formally to
discuss progress and to ensure resource scheduling, capability
development and performance management procedures are being
followed
[0077] Turning now to FIGS. 4 and 7, another workstream in the IT
development transformation workstream 400 in the management
controls worksteam 700. Strong management control within the IT
organization is critical to ensuring optimal use of resources,
effective cost management and good visibility of the KPIs for the
organization. The key to success is to run the IT organization as a
quasi-commercial business. For most organizations, there is
significant scope for cost reduction and improvement in management
MIS. Accordingly, key objectives of this workstream are to design,
build, implement and institutionalize the processes and tools
required for operational excellence and to identify and implement
cost reduction initiatives. The Management Controls workstream 700
is composed of 7 substeps, as represented below and illustrated in
FIG. 7.
[0078] Relentlessly driving the organization forward by reducing
costs and improving capability requires everyone to have access to
and to use good MIS. Management information step 710 includes
creating a balanced scorecard covering financials, customer,
internal operations and people, and this type of scorecard is both
a management and a communications tool. Bonus payments may also be
linked to the achievement of certain targets in the scorecard.
Thus, key steps in the Management information step include defining
MIS requirements; designing, building and implementing the
scorecard tool; and designing, building and implementing scorecard
processes.
[0079] In regard to the resource management step 720, in a
project-based organization, good resource management processes are
critical. They allow the organization to plan, ensuring that the
right people with the right skills are available for projects. They
help reduce costs by tracking utilization and chargeability,
allowing management to continually increase the level of
utilization achieved. Thus, the resource management step 720
includes designing, building, and implementing: (1) a resource
database; (2) Scheduling processes and tools; (3) Time recording
processes and tools; and (4) Utilization and chargeability
processes and tools.
[0080] Continuing with the management control workflow 700 of FIG.
7, the financial management step 730 addresses the need of the IT
organization to be run as a business in its own right. From a
financial perspective, the IT organization can be a cost centre or
a profit centre. Either way, a strong commercial focus will ensure
that costs are managed effectively and that a business plan is
created and executed. The financial management step 730 address
these needs by defining the financial structure for the IT
organization (cost centre, profit centre, source of funds, etc.).
Then a annual Business Plan for the IT may created for the IT
organization. To better accomplish these tasks, the financial
management step 730 may include designing, building, and
implementing budgeting tools and processes, invoicing tools and
processes, and financial/management accounting tools and
processes.
[0081] Similarly, vendor management step 740 is needed because good
vendor management processes facilitate cost reduction in two areas.
First, hardware and software license fees reductions may be
achieved through rationalization of suppliers and consolidation of
license fees. Secondly, contractor and partner costs reductions may
be achieved through better visibility, contractor reduction,
utilization of offshore sourcing and contract
management/negotiation. These processes also help the organization
to identify strategic partners, build relationships and leverage
the strengths and contacts of these partners. The vendor management
step 740 then includes defining an approach to vendor management;
defining vendor management processes; reviewing hardware and
software suppliers and contracts; developing sourcing strategy;
reviewing contractors: contractor conversion/substitution; and
reviewing of strategic partners.
[0082] Turning now to the portfolio management step 750, in the
Vision and Operating Model workstream, categorization rules,
governance rules, high level processes and grading criteria are
defined. In this workstream 750, the processes and tools for
ongoing management of the portfolio of work for the organization
are designed, built and implemented. These processes are required
to keep tight control on the work requests entering the
organization, ensuring that the organization focuses on strategic
work. They also give good visibility of the status of all work in
the organization. The key tasks of the portfolio management in step
750 include the designing, building, and implement of a portfolio
database, which is database of all work in the organization. Tools
and processes for Portfolio administration and reporting, may also
be designed, built, and implemented, along with tools and processes
for systems planning.
[0083] Turing now to the knowledge management step 760, knowledge
management is the capture, storage and utilization of knowledge
capital, such as project documents (plans, designs, test scripts),
business knowledge and technical knowledge. Leveraging knowledge
reduces the cost of new projects, reduces project timescales and
reduces dependency on key resources. Key tasks in step 760 include
trying to define an approach to knowledge management; to define
assets and capital to be managed; and to design, build and
implement required processes and tools.
[0084] Similarly, costs can be saved through effective facilities
management in step 770. This facilities management in step 770 may
involve consolidation into one central location, provision of
remote access/home working, etc. Such activities also improve the
productivity of staff. Accordingly, related key tasks include an
as-is analysis of current physical and technical infrastructure
(i.e., prior to any additional transformation); determining optimal
physical configuration; a determining of optimal technical
infrastructure (LAN, WAN, Internet); and creating an appropriate
action plans and implementation strategy.
[0085] Turning now to FIGS. 4 and 8, the next of the IT
transformation workstreams 400 is the customer management
workstream 800. Customer centricity is often a key to the success
of a transformation. The customer management workstream 800 is
focused on aligning the organization more closely with the customer
in order to understand, predict and fulfill their needs, as well as
managing and measuring customer satisfaction levels. A demand
management step 810 and an account planning step 820 are focused on
gathering and managing client requirements. Then, a relationship
management step 830 focuses on managing the ongoing expectations of
client regarding service delivery, and a customer satisfaction step
840 focuses on measuring the current performance of the
organization from the customer perspective.
[0086] The demand management step 810 encompasses both short term
(up to a year) and medium to long term (one to five years) planning
and management of the demand for IT services. Short term demand
management involves the collation of demand up to 1 year and the
management of expectations around that demand. This involves
balancing the strategic versus tactical work requested,
prioritizing work requests as well as liaisoning with the resource
scheduling process to ensure demand is met in the appropriate time
frame. In contrast, medium to long term demand management during
demand management step 810 involves the collation of long term
business plans, and translating these into broad IT needs (in terms
of size, and skill requirements), so that as those plans become
reality and so that the development organization is well positioned
to meet that demand. Thus, the demand management step 810 generally
comprises the design, building and implementing of the tools and
process for capturing demand from clients. Next, demand management
is integrated with the overall planning process for IT.
[0087] The Account Planning process 820 helps IT organizations to
better manage their approach to customers, grow revenues, increase
customer retention, build and expand the customer relationship. The
creating of an account plan in step 820 begins with the gathering
of relevant information about the customer/account in order to
develop an understanding of the account's current situation and to
classify the account (e.g., high-value or low value) according to
an established set of criteria. The goals and objectives for the
account are then defined and a plan created to achieve these goals.
To further these goals, the organization may design, build and
implement a standard template and process for account planning, and
then use these templates to create the account plans.
[0088] The relationship management step 830 is focused on
identifying who are the key customers, how they wish to interface
with the IT function and then aligning the IT organization to meet
these requirements. The relationship management step 830 includes
performing client mapping in order to understand who the clients
are, their roles, etc. Then, each client executive mapped to an IT
executive/senior manager in order to create a personal
responsibility for each client. The organization then sets out a
plan for building relationships with the clients. The relationship
management step 830 may optimally includes define a standard
operating practice, or modus operandi, regarding how client
relationships, e.g., such as how demand is captured, when and where
status meetings with clients are held, a format for status reports
to the clients, how issues are escalated and resolved, etc.
[0089] Continuing with FIG. 8, customer satisfaction measurements
may be acquired during customer satisfaction step 840 as a key
measure of the success of any Transformation program and any
organization in general. Customer satisfaction step 840 should
formally measure on a periodic basis for input into the management
scorecard. Informal feedback from the customer is preferably
consistently sought and relayed back to the appropriate managers
within the organization. In this regard, channels of escalation
regarding customer satisfaction should be well defined and widely
understood. Because perception is reality when it comes to
satisfaction, it often vital that customer expectations and
relationships are managed appropriately on an ongoing basis.
Aspects of the customer satisfaction step 840 typically include
designing, building and implementing the processes and tools for
measuring and reporting customer satisfaction. Moreover, the
organization should agree to a processes for escalating customer
satisfaction issues.
[0090] This workstream is focused on improving the core delivery
capability of the organization by introducing and instutionalizing
best practice behavior in software development. This involves
designing, building, implementing and institutionalizing the
processes and tools required for software development excellence as
well as institutionalizing the desired behavior within the software
development community.
[0091] As depicted in FIGS. 4 and 9, the IT transformation
workstreams 400 continues with the development processes and tools
workstream 900. The development processes and tools workstream 900
focuses on three areas, a project management step 910, a software
development step 920, and quality step 930. The development
processes and tools workstream 900 should increase the level of
control during project delivery, the ease with which resources can
move from one project to another, transparency on performance
levels by enabling like with like comparisons, and the ability to
share and reuse knowledge in the organization. The deliverables
produced as part of the development processes and tools workstream
900 should leverage best practice as defined by the Business
Integration Methodology and be designed in conjunction with the
appropriate communities in the organization ensuring a solution
that fits.
[0092] Turning now to FIG. 9, the objective of the project
management step 910 is to introduce "best practice" project
management processes, tools and behavior to the organization. To
ensure the deliverables are taken up by the project management
community there should be an equal emphasis placed on energizing
and changing the behavior of project managers, defining and
documenting best practice project management processes and
releasing a suite of tools that support and reinforce the defined
processes. Accordingly, the project management step 910 generally
includes energizing the project management community through
involvement, consultation and communication. The project management
step 910 may further include defining and documenting best practice
processes in project management by referring to standard building
information modeling (BIM) methodology and tailoring the proposed
process to the needs of the organization. The project management
step 910 may further include the design and building of a suite of
project management tools, including estimating tools, an earned
value and tracking tool, a risk and issue management tool, and a
document repository that including standard templates by phase
available to download, as described in greater detail below.
[0093] Turning back to FIG. 9, the objective of the software
development processes 920 is to introduce "best practice" standard
software development processes, tools and behavior to the
organization. This enables the benefits of improved quality and
reliability; reduction in the amount of rework; reduction in the
cost of correcting problems; requirements traceability allowing
informed scope decisions; improved risk management; and improved
performance against budget and schedule. A Business Integration
Methodology may be used as the reference material for the software
development processes 920. Specifically, the software development
processes 920 generally includes the task of identifying and
prioritizing areas in the software development process that can be
improved. Moreover, the organization should define "best practice"
software development processes by referring to a known BIM
methodology. Continuing with the software development processes
920, the organization may further define standard templates, tools
and techniques that reinforce best practice processes.
[0094] Turning again to FIG. 9, the level of effort that is put
into defining, documenting and implementing quality processes will
depend greatly on the objectives of Transformation. The focus on
quality from an ITT perspective should be on how continuous
improvement can be promoted within the organization with minimal
additional effort or overhead and without resorting to a full total
quality management (TQM) type program. A key tool for quality and
continual improvement is a project review and quality assurance
process in the quality processes step 930. The quality processes
step 930 should preferably be implemented on peer-review basis. In
this way, the quality processes step 930T helps to ensure that
projects adhere to the required processes and tools. Furthermore,
the quality processes step 930 provides an objective assessment of
the state of a project, and helps to develop communication and
knowledge sharing among the project management community. In view
of these goals, the quality processes step 930 generally includes
define the key processes and tools which should be used on all
projects. The quality processes step 930 further includes the
defining and building of the quality assurance processes and tools,
as well as the training of project managers in how to conduct
project quality assurance processes. Finally, the organization, as
part of the quality processes step 930, should implement the
created project quality assurance processes.
[0095] Turning now to FIGS. 4 and 10, the organizational
development workstream 1000 underpins the working of the new
organization and facilitates the creation of a highly motivated and
truly empowered workforce. Step 1000 specifically outlines clear
models of the desired behaviors required to support the strategic
intent, enables core business processes and contributes to the
desired business outcomes. As depicted in FIG. 10, the
Organizational Development Workstream 1000 is composed of five
substeps, including a culture change step 1010, a capability
development step 1020, a leadership development step 1030, a HR
strategy alignment step 1040, and a communications step 1050.
[0096] The culture change step 1010 helps to create an adaptive,
change-ready culture the help to ensure that the organization can
respond rapidly and effectively to both internal and external
changes. Culture is the way things are done around in the
organization, and it drives employee's work habits by influencing
the way they think, feel, react to and execute their jobs, all of
which has a direct relationship to business performance. Companies
with adaptive and visionary cultures significantly outperform
others. Accordingly, the culture change step 1010 a current state
assessment that determines the current culture and provides a
baseline against which any subsequent interventions can be
measured. The culture change step 1010 further includes determining
desired future culture, since once the current state is identified,
the desired future state must be determined since the future state
will outline the desired vision, values and behaviors required for
the organization to be effective. Next, the culture change step
1010 includes comparing the current and future cultures, so that
any gaps will be highlighted and recommendations made to bridge
these gap, because it is important that an appropriate measurement
mechanism is put in place to ensure the organization is moving
towards the appropriate culture. The culture change step 1010
preferably further includes a rollout and launch of the new culture
in a creative and effective manner to create momentum around the
new desired culture; and once the launch has taken place, the
desired behaviors, values, vision should be re-iterated
continuously in all communications and ways of working. The
cultures should then be institutionalize in the culture change step
1010 by institutionalizing and publicizing the desired behaviors
and values and aligning them to the strategy of the organization.
In this way, the organization can move forward in an integrated
manner. It should be appreciated, however, that the actual
institutionalization of a new culture can take years.
[0097] The objective of the Capability Development step 1020 is to
enable management to develop the capabilities of their staff. The
capability development step 1020 addresses both organisational
needs (e.g., forward resource planning, assignment of resources,
targeted recruitment, selection and career advancement) and
individual needs (e.g., skills development, personal development
planning). During the capability development step 1020, the
organization should design a capability development approach,
including developing guiding principles for capability development
since the vision and values may underpin all the skills and the
development of the proposed capability model). The capability
development approach further include developing the deployment
workplan and the building of team workstream. The organization
continues the capability development step 1020 by developing a
proposed capability model. The proposed capability model identifies
the skills critical to achieving the business strategy, and
demonstrates the ideal skill sets at each level. The proposed
capability model will enable management to shape the development of
the capabilities of their staff and to enable effective resource
scheduling in line with the organisational strategy. Continuing
with the capability development step 1020, the organization next
performs a current state assessment by developing a survey or audit
to identify the current level of technical, people management and
commercial skills. In the capability development step 1020, the
organization analyzes the skills audit results against the proposed
capability model to determine any gaps, strengths and development
opportunities. The proposed capability model is the target
end-state. However the organisation may be in catch-up mode
initially and may concentrate on certain hot-spots. The analysis
tool must be capable of providing sorted reports and comprehensive
analysis, by practice, role, skill etc. Once the gap analysis is
complete, both short and long-term recommendations for closing the
gap are outlined, which will provide input into the development of
workforce strategies and processes; i.e., personal development
plans recommendations, resource scheduling, targeted recruiting.
The results should also be communicated to staff. To conclude the
capability development step 1020, the organization designs,
develops, and implement a training model that addresses the
identified skill deficiencies, and the training model sets the
direction for how identified development requirements will be
addressed.
[0098] Continuing with FIG. 10, the leadership development step
1030 addresses the need of accelerating and guaranteeing
sustainability of behavioral and attitudinal change throughout the
organization, by having the senior management team lead by example
to demonstrate the behaviors and capabilities valued by the
business). The leadership development step 1030 is designed to
support the management team as they take up their leading roles, by
providing them with an understanding of the skills necessary to
manage more rigorously and play the leadership role more
effectively. The leadership development step 1030 begins with the
designing and building of a the leadership development step program
that is designed to build the capabilities of the senior managers,
both individually and collectively as a team. The organization next
rolls-out the leadership development program using known techniques
such as through a personal development plan (PDP) design and
development, psychometric testing, core values 3600 measurement, or
an introduction to leadership course. The leadership development
step 1030 continues with the implementation and
institutionalization of the leadership development. Specifically,
the senior management team are responsible for completing the
actions outlined in their PDPs. Leadership Development is generally
a continuous process, with regular assessment and feedback
necessary for identifying strengths and areas for development,
succession planning, targeted recruitment, etc.
[0099] The HR strategy alignment step 1040 helps to align the HR
strategy with the overall vision and strategy of the organization.
The HR strategy may need to be revised, based on the new
organization structure and the results of the Culture assessment
and the capability requirements of the organization. The HR
strategy alignment step 1040 begins with a current state
assessment, which is a detailed analysis of the current HR
department, roles and responsibilities must be undertaken. In
addition the current performance management, career development and
rewards and recognition process and procedures need to be evaluated
in light of the new culture. The HR strategy alignment step 1040
continues with organization prepare an HR charter and plan that
sets out the future roles and responsibilities within HR,
specifying the changes as a result of the new organization
structure and the introduction of career coaches, practice leads
and the capability development manager. In addition, changes may be
required to HR processes to aid the implementation of the new
culture. Where needed, the organization continues the HR strategy
alignment step 1040 by reconfiguring HR to support new organization
by implementing the changes required to support the new
organization.
[0100] The communications step 1050 is the process by which the
organization achieves understanding and involvement, resulting in
increased cooperation and acceptance of change. Throughout the
entire Transformation process, it is imperative that there is
regular, effective timely two-way tailored communications, and that
going forward the culture of open communications is maintained.
Thus, communications step 1050 may include a communications audit,
in which an evaluation of the current communication processes is
conducted to determine what mechanisms are working or failing as
input to the creation of the communications plan. In response to
this audit, the organization develops a communications plan that
provides an overall framework for managing and coordinating the
wide variety of communication that will directly or indirectly take
place to support the development transformation. The communications
plan addresses audiences, messages, communication channels, and
phase of commitment and creates a mapping between all four. Such a
framework helps ensure that the organization provides relevant,
accurate, consistent, tailored information to the organization
(both internally and externally), at all times. The organization
next runs the communications program, such as holding watershed
events, communication effectiveness surveys, employee satisfaction
surveys, newsletters, poster campaigns, etc. The organization then
institutionalizes the communications plan, thereby internalizing
effective communication processes and techniques.
[0101] Turning now to FIG. 11, the IT transformation workflows
continue with program management workflow 1100. The role of
programme management workflow 1100 for development transformation
is different to that for traditional technology implementation
programmes. The main difference is that the programme manager does
not have accountability for implementing the programme.
Accountability rests with the line executives. They must lead the
change initiatives. The primary role of the program manage workflow
1100 is to facilitate the executive team in their transformation
leadership role. The program manage workflow 1100 generally
includes an executive facilitation step 1110, a program planning
step 1120, a monitoring and reporting status step 1130, a managing
the actions/issues log step 1140, a business case management step
1150, a standard tools, processes and techniques step 1160, and a
stakeholder management step 1170.
[0102] In the executive facilitation step 1110, the transformation
team facilitate the executive team in periodic strategy sessions
and various offsite sessions. The goal is to assist the executives
reach the right answers, provide specialist input on various topics
and to continually motivate the team. Key tasks in the executive
facilitation step 1110 include planning and facilitating the
executive strategy sessions and offsite sessions. The
transformation team should further provide specialist input on IT
Transformation topics.
[0103] Continuing with FIG. 11, during the program planning step
1120, a programme director on the transformation committee works
with the executives to create the overall high-level programme
plans. These plans tend to be revisited periodically, such as every
3 months. The programme director then decomposes these high-level
plans into detailed plans. These plans are the given to the various
teams and working parties responsible for implementation. Thus, the
program planning step 1120 generally includes defining the
long-term and short-term goals of the programme, as well as,
defining the work streams for the near future and the detailed
plans.
[0104] Continuing with FIG. 11, the monitoring and reporting status
step 1130 has the programme director continually monitoring the
status of the various activities underway. This status is reported
to the executives, who then decide on what corrective action to
take. The status may also be communicated to the wider staff
community. Accordingly, the monitoring and reporting status step
1130 includes the task of monitoring the status of the various
working parties and teams, and then reporting status to the
organization executives.
[0105] Returning to FIG. 11, the managing the actions/issues log
step 1140 has the programme director managing the issues and
actions logs and using this process to ensure that the executive
and senior management team do actually execute their actions. This
process needs to managed rigorously, particularly at the start of
the programme, to ensure the right behaviours are adopted. Thus,
key tasks in the managing the actions/issues log step 1140 include
recording the programme issues and associated actions, and
regularly reporting on status of issues and actions.
[0106] The business case management step 1150 outlines how the
business case is defined and managed. It is imperative that the
executives understand and own the business case. The programme
director typically creates a "strawman" business case and reviews
this with the client executive. Once the case has been approved,
tracking tools and processes must be designed and implemented. It
is important to avoid over-elaboration in the business case, as
this will make tracking progress against it very difficult.
Approval from internal audit for both the business case and the
tacking process is vital. Thus, key steps in the business case
management step 1150 include creating the business case that is
reviewed and approved by client executive and internal audit.
Moreover, the business case management step 1150 includes creating
the tools and processes to track progress against the business
case, as well as reporting status to client executive and sponsor.
The development of a business case is described in greater detail
in FIG. 12 and its associated text.
[0107] The standard tools, processes and techniques step 1160
comprises introducing new ways of working, standard project
management tools and techniques that facilitate smoother running
the Transformation programme. Specifically, the standard tools,
processes and techniques step 1160 includes introducing tools,
process and techniques which increase the efficiency and
effectiveness of the executive team and the working parties.
[0108] Referring again to FIG. 11, the stakeholder management step
1170 focuses on ensuring that all stakeholders are informed of the
progress being made by the programme, that stakeholders are in a
position to resolve issues when and if they arise and finally that
stakeholder expectations are managed appropriately. Thus, the
stakeholder management step 1170 typically includes reporting the
transformation status to the sponsor and other stakeholders, and
then managing the expectations of the stakeholders.
[0109] Turning now to FIG. 12, the development of a business case
in step 1200, perhaps as part of the business case management step
1150, generally includes defining the benefits of the
transformation in step 1210 and defining the costs of the benefits
in step 1220.
[0110] The defining of the benefits in step 1210 includes
evaluating quantitative benefits such as reductions in the cost of
IT, increases in the return on investment (ROI) on IT spending, and
increases in the revenue of the IT function. The defining of the
benefits in step 1210 further includes evaluating qualitative
benefits, including predicting increases in customer satisfaction,
improvements in delivery capability and predictability,
improvements in internal operations (transparency), increases in
staff capability and satisfaction, and the creation of a
change-ready, accountable organization.
[0111] The steps in the process of defining costs and benefits to
IT transformation may be carried according to known techniques and
methods. For example, the total cost of IT can be decreased by
reducing non-strategic spending, reducing the cost of strategic
spending, and reducing labor costs, and these benefits can be
measured according to known techniques. Strategic spend is spending
associated with strategic projects which create real value for the
organization and its shareholders. Such projects have a business
case with a strong return on investment. Typically, there are eight
areas of non-strategic spend in an IT organization:
[0112] Unassigned time
[0113] Management overhead
[0114] Application Maintenance
[0115] Tactical spend
[0116] Support and operational costs
[0117] Training costs
[0118] Hardware and software license costs
[0119] Facilities costs
[0120] There are a number of techniques which can be used to reduce
the cost of theses eight areas of non-strategic spend. For example,
All costs in the organization should be measured against budget.
Identifying and measuring the cost of unassigned time, training,
management overhead etc can reveal interesting trends and
behaviors, and allows management to track these costs, benchmark
them against other organizations and ultimately reduce these costs.
Moreover, within the IT organization, every individual should have
clear accountabilities. Likewise, the organization should separate
strategic activities from non-strategic to ensure that the
accountable executives have clear objectives. Thus, The Head of
Strategic Development is accountable for delivering value to the
organization, while the Head of Service Delivery is accountable for
delivering day to day service at the lowest possible cost. The
organization may further benefit by setting aggressive budgets for
each overhead area during the annual planning and budgeting
process, and each budget should be assigned an accountable owner.
The use of automated testing, with standardized test data and test
scripts, can also significantly reduce the cost of application
maintenance and tactical development. The organization can also
gain through the active management of license costs that can grow
substantially overtime. Active management of these costs, coupled
with supplier management and negotiation strategies can bring
significant reductions. Likewise, active management of facilities
costs can be beneficial since, in large, diverse organizations,
office costs and associated infrastructure can form a substantial
part of the cost base. Consolidating buildings and infrastructure
can lead to substantial savings.
[0121] Further measurable benefits to the organization may be
obtained by implementing effective processes and tools for
resourcing scheduling (MIS, time recording etc.) that significantly
reduce the amount of management overhead and support time consumed
in running the IT function. Similarly, the automation of support
activities can reduce the number of required employees, and number
of needed employees can be further reduced by the proper
classification of work allows the best allocation of employee
skills, i.e., demand management. Similarly, Workflow tools that
enable management to group together similar requests, to allocate
them to the right resources, and to track their progress can
dramatically improve productivity in application maintenance.
[0122] Referring now to FIG. 13A, an IT transformation system 1300
is now provided. Specifically, the IT transformation system 1300
provides a computer 1310 that includes an input device 1320 and an
output device 1330. The computer accesses an associated application
repository 1340 and a data repository 1350. Embodiments of the IT
transformation system 1300 may be connected to users 1370 and
distant data repository (not illustrated) via a distributed network
1360, such as the Internet.
[0123] As depicted in FIG. 13B, the shareholder value system 800
may be a software-driven application including modules located in
the application repository 1340 that automatically perform each of
the steps of the IT transformation workstreams 400. Specifically,
the application repository 1340 may have modules 1341-1347
corresponding, respectively, to transformation leadership
workstream 500, vision & operating model workstream 600,
management controls workstream 700, customer management workstream
800, development processes and tools workstream 900, organizational
development workstream 1000, and program management workstream
1100.
[0124] The data repository 1350 may contain various information and
documents as needed to assist the organization through the IT
transformation process 100. Specifically, the data repository 1350
may contain instructions to the organization on the steps of the IT
transformation. The data repository 1350 may further include a
schedule for coordinating the operation of the modules 1341-1347.
The scheduler may also note the performance of activities, and
therefore prompt the organization as to needed actions to improve
or complete the transformation. Similarly, the data repository 1350
may include data collected and used through the transformation
process, so that this information is ready for further actions and
review, such as cost/benefit analysis of the transformation and to
prepare the organization for further transformation. The data
repository 1350 may further contain exemplary documents that the
organization can use as for guidance when performing the steps of
the IT transformation workflow 400. For example, the data
repository 1350 may contain exemplary planning documents to show
the organization the types of details to be included in a
transformation plan.
[0125] Conclusion
[0126] The foregoing description of the preferred embodiments of
the invention has been presented for the purposes of illustration
and description. It is not intended to be exhaustive or to limit
the invention to the precise form disclosed. Many modifications and
variations are possible in light of the above teaching. For
instance, the method of the present invention may be modified as
needed to incorporate new communication networks and protocols as
they are developed. It is intended that the scope of the invention
be limited not by this detailed description, but rather by the
claims appended hereto. The above specification, examples and data
provide a complete description of the manufacture and use of the
composition of the invention. Since many embodiments of the
invention can be made without departing from the spirit and scope
of the invention, the invention resides in the claims hereinafter
appended.
* * * * *